The Federal Reserve moved deeper into uncharted waters on Tuesday, heralding further unconventional measures to support the economy as it slashed interest rates from 1 per cent to virtually zero.

In a historic statement, the US central bank said it would target a record low interest rate, expressed as a range of between zero and 0.25 per cent. It said it expected to keep rates at ultra-low levels “for some time” and vowed to use “all available tools to promote the resumption of sustainable growth and to preserve price stability”.